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Karnataka stirs biotech recipe

Our Bureau

BANGALORE, Feb. 24

KARNATAKA on Saturday unveiled its ambitious Biotechnology Policy, hoping to reap from it what infotech did to the State in the last decade.

The State aims to be a major base and outsourcing point for pharma research and biotech contract units. Infrastructure and State tax benefits ranging from three to eight years have been suggested for biotech and research companies investing in Karnataka, Ms Kiran Mazumdar Shaw, Biocon CEO and Chairperson of the Vision Group on Biotechnology, which drafted the policy, said.

Three biotech parks and a Centre for Human Genetics have been conceived along with a Karnataka Biotechnology Development Council which will be the regulatory, advisory single window.

A 30-acre park at University of Agricultural Sciences, Bangalore; a 15-acre agri biotech park at Dharward UAS and a marine biotech park at Karwar will be set up.

The Chief Minister, Mr S.M. Krishna, said the exercise is meant to make Bangalore India's biotech city, too. The industry will enjoy the same premium status and policy support as the IT industry does.

The Department of IT and Biotechnology will be the nodal agency. The Institute of Bioinformatics and Applied Biotechnology, due to start courses this year, will develop human resource and act as incubator for biotech start-ups.

``We will target global pharma companies to look at Karnataka, in particular Bangalore, as investment destination. The Government's focus will be on harnessing biotech for improving agricultural production,'' he said.

According to Ms Mazumdar Shaw, Bangalore can tap unique opportunities that biotech offers. Contract research organisations would be like EoUs, making Karnataka a key outsourcing point as with software development.

In the mega international initiative like the human genome project, research on the rich Indian human gene pool can lead to discoveries of therapies, high value products and diagnostic technologies.

Bangalore already houses several biotech research labs like IISc and NCBS, companies like AstraZeneca R&D, Biocon India, Bangalore Genei and at least 60 VC funds. It can now lure several reagent and chip companies, tools and bioinformatics, R&D and contr act; and product and therapy companies in genomics.

Biofuels is another promising area and surplus molasses from the northern sugar belt can be used to develop biofuels like gasohol and ethanol as auto fuels.

The Excise Department will work out guidelines for this sector.

Biotech-scape* Same fiscal, policy and labour law privileges as IT sector.

* 5-yr entry tax cut on inputs, capital goods, captive power sets.

* 8-year concessions for mega projects (over Rs 50 crore)

* 50 per cent rebate on stamp duty, registration for first sale/lease

* Single window to coordinate approvals, green clearance

* No location restraints on users up to 5kva power

* Floor area ration relaxed up to 50 per cent

* Biotech VCFs to be encouraged